Chinese Buyers Investing in Wine Market

Some wines are selling for 840 pounds a year before they are to be bottled.

Some wines are selling for 840 pounds a year before they are to be bottled.

Experts in wine have long boasted about the investment in wine out performing usual market investments.  With more people investing in wine and the fact that investors can if they so choose enjoy their investment on special occasions, the wine market is getting new players.  The wealthy Chinese have entered as new targeted buyers.

The  price value of wines right now is due to speculators and Chinese buyers.  According to the Spirit Brokers Association some wines that have yet to even be bottled have already reached 840 pounds or 1,000 euros per bottle.

The vintage of 2005 broke records but already at 20-30 per cent better is the 2009 Bordeaux wines.  George Haushalter, of the Bordeaux Wine Merchants Association, said: “The supply of the best Grands Crus is limited, but demand is greater because of both the exceptional vintage and also the arrival of the Chinese to the market.”

Export of wine fell 14 per cent since 2009 but sales to the Chinese market doubled.  Estates of Medoc, Saint-Emilion, Sauternes and Pessac-Leognon are favorites of the Chinese buyers.  A bottle of Chateau Ausone from Saint-Emilion is going for 1,000 euros a bottle at pre-release and will not be delivered until the end of 2011.  Bottles of Yquem from Sauternes are trading at 800 euros.

For those wanting to seek advice about investing in wine, the Spirit Brokers Association is willing to give advice and help new buyers who want to enter the market.

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